50% off to pay off a cell phone account, should I do it?

50% off to pay off a cell phone account, should I do it?

For a while now, I've owed AT&T $419(past due+early termination fees) and have just been ignoring it, because I wanted to just wait until it dropped off. However, my newest credit reports shows that it was renewed(the new 7 years) when a collections company took it over, and now it won't drop off until Dec 2015. This collection agency, whom is probably fly-by-night, sent me an offer to settle for $247.

My question, which always seems to be a 50/50 answer from people, is should I pay the settlement and show a $0 paid balance, or should I just let it sit on there since I won't be in the market for a home or car within the time until it falls off in '15. I bought a new car last year and live with others, so there's really no dire need for great credit at the moment. Thanks for suggestions.

Re: 50% off to pay off a cell phone account, should I do it?

JerseyJeff84 wrote:

For a while now, I've owed AT&T $419(past due+early termination fees) and have just been ignoring it, because I wanted to just wait until it dropped off. However, my newest credit reports shows that it was renewed(the new 7 years) when a collections company took it over, and now it won't drop off until Dec 2015. This collection agency, whom is probably fly-by-night, sent me an offer to settle for $247.

My question, which always seems to be a 50/50 answer from people, is should I pay the settlement and show a $0 paid balance, or should I just let it sit on there since I won't be in the market for a home or car within the time until it falls off in '15. I bought a new car last year and live with others, so there's really no dire need for great credit at the moment. Thanks for suggestions.

By law, via the FCRA, OCs and CAs can report for 7-7.5 years past the DOFD. If AT&T owned the debt, then they could (and still can) report for 7-7.5 yrs past the DOFD. If AT&T sells the debt to a CA, then AT&T will either delete or report $0, and the CA can report for 7 yrs past DOFD. When a debt is sold or assigned, the DOFD cannot change. There is only one DOFD and that's when you first went late and never recovered. If DOFD changes, thereby causing it to report longer, then the CA is breaking the law.

Where did you get the 12/2015 date from? When did you first go late and default? If the drop off date is 12/2015, then the guessed DOFD would be 12/2008. Does that date sound right as the approximate date the account went bad? Did AT&T report anything other than a DOFD of 12/2008 or a drop off date anything other than 12/2015?

IMO, don't let them report $0. You'd want it off. You can send a DV to the CA and if they verify send a PFD (and offer a settlement if you want).

Re: 50% off to pay off a cell phone account, should I do it?

One thing I'd like to mention, we had a similar situation happen to us. Once we reestablished our credit and purchased our home, a creditor from 13+ years back tried to collect from us. Having studied our credit report thoroughly before purchasing our home we knew this wasn't an issue any longer. We researched the laws for our state and found out so long as we did not admit to owing the debt any longer they could not collect from us. We took the creditors address and put a certified letter in the mail to them stating ONLY we did not owe the debt and they were to no longer contact us. Nothing from them since.

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IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.